India's Solar and Energy Storage Stakeholders Call for Tax Reforms and PLI Expansion Ahead of Budget 2026
Ahead of the Union Budget 2026-27, stakeholders in India's solar and energy storage sectors are urging the government to implement tax reforms, expand production-linked incentive schemes, and enhance viability gap funding for renewable projects. They advocate for reduced GST on lithium-ion batteries, improved access to long-term green finance, and initiatives for a circular economy to support the country's clean energy goals. The upcoming budget is viewed as critical for advancing large-scale renewable deployment and ensuring reliable power delivery.
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Ahead of the Union Budget 2026-27 scheduled for February 1, stakeholders in India's solar and energy storage sectors have requested the government to prioritize tax reforms, expand production-linked incentive (PLI) schemes, and enhance viability gap funding (VGF) for renewable energy projects. They also seek additional allocations for residential rooftop solar, better access to long-term green finance, and initiatives focused on a circular economy and grid modernization.
Recommendations include introducing a group tax consolidation regime to streamline tax administration, reducing the GST rate on lithium-ion batteries from 18% to 5%, and establishing a National Mission on Circular Economy. Key figures suggest that a robust battery supply chain strategy, including support for manufacturing and R&D, is crucial for achieving India's clean energy targets and reducing import dependence. The upcoming budget is seen as a pivotal moment for enabling large-scale renewable deployment and ensuring reliable power delivery.
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